The exit of British Energy company BP off the board of Rosneft is a complete example of private sanction that is complementing the efforts from governments around the world.
British multinational oil and gas company BP Plc (NYSE: BP) has announced it is exiting its stance as a business partner and shareholder of Russia-owned oil conglomerate Rosneft in the wake of the ongoing invasion of Ukraine. As reported by Fox Business, the British company which has held a 19.75% stake in the Russian side will sell its stake, while the duo of the company’s Chief Executive Officer Bernard Looney, and Bob Dudley, a former BP executive, will also resign from Rosneft’s board.
“I am convinced that the decisions we have taken as a board are not only the right thing to do but are also in the long-term interests of bp,” Looney said in a statement. “Our immediate priority is caring for our great people in the region and we will do our utmost to support them.”
As diplomatic ties between Russia and Ukraine went sour, with the former launching what many called unprovoked attacks on the latter in the past week, a number of foreign companies are reviewing their operations in Russia. BP explicitly stated the invasion as the reason for its decision to offload its Rosneft shares, and that the Russian government is a direct beneficiary of the oil company’s activities.
“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change,” said BP Chairman Helge Lund, “We can no longer support BP representatives holding a role on the Rosneft board. The Rosneft holding is no longer aligned with BP’s business and strategy and it is now the board’s decision to exit BP’s shareholding in Rosneft. The BP board believes these decisions are in the best long-term interests of all our shareholders.”
British Energy BP Embodies Private Sanctions
The exit of British Energy company BP off the board of Rosneft is a complete example of private sanction that is complementing the efforts from governments around the world. Russia is being hit on every side with its economy billed to feel the weight of these sanctions in the longer term.
Last week, Coinspeaker reported that FlexPool, one of the largest Ethereum mining pools, unveiled its decision to cut its Russian customers off the pool in a bid to extend its solidarity to Ukraine. While the sanctions are a way to get back at the Russian government, citizens are undoubtedly the ones being cut off from global services, and the ultimate aim of forcing President Vladimir Putin to stand down through public outcry may be achieved in the medium to long term.
With debt financing for select Russian banks cut off, and the plans to sever the country’s financial institutions from the SWIFT Network, it is yet to be seen how many economic sanctions will be meted out before Russia calls off its offensive on Ukraine.